Robust Facility Location Problem for Hazardous Waste Transportation

We consider a robust facility location problem for hazardous materials (hazmat) transportation considering routing decisions of hazmat carriers. Given a network and a known set of nodes from which hazmat originate, we compute the locations of hazmat processing sites (e.g. incinerators) which will minimize total cost, in terms of fixed facility cost, transportation cost, and exposure risk. We assume that hazmat will be taken to the closest existing processing site. We present an exact full enumeration method, which is useful for small or medium-size problems. For larger problems, the use of a genetic algorithm is explored. Through numerical experiments, we discuss the impact of uncertainty and robust optimization in the hazmat combined location-routing problem.